Great Britain pound traders’ optimism, suggested by the currency options market, indicate that a strong bullish sentiment against the euro is currently active on the Forex market.
For a period of more than 3 years, the euro remained in advantage against the pound in the currency options market. This tendency has been reversed, as traders are now paying 0.25 percentage-point for one-week call options on the pound if compared to puts. Call options are those where traders have the right to buy an asset, while put options oppositely, give the right to sell assets. The turning point in the EUR/GBP market occurred on April 3, and, since April 6, the market favored the pound in every day but one.